Powell: 40% of Households Making Less Than $40K Lost a Job

Fed Chairman Jay Powell gave an online speech today. In it, he said that Congress and the White House need to spend more money to combat the economic crisis. That is, on top of what’s already been spent.

While he did not specify what those measures are and where they would come from, Powell said the coronavirus has triggered a situation unlike previous recessions the U.S. has endured, and the response may have to be more from Congress than the Fed.

He noted the unprecedented strength of the fiscal and monetary measures already taken but stressed the importance of making sure that the deepest slump since the Great Depression does not get out of control. The Fed has cut its benchmark rate to near zero and instituted multiple lending and liquidity programs, while Congress has appropriated close to $3 trillion in rescue funding.

The market is mixed so far today. The S&P 500 and Nasdaq are up, while the Dow and Russell 2000 are down. Powell said that 40% of households making less than $40,000 lost a job.

Posted by on May 13th, 2020 at 11:25 am


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